Bid rig contractors face fines of “hundreds of millions” pounds

Contractors caught up in the industry’s biggest ever bid-rigging probe could be hit with fines running into “hundreds of millions”.

Legal experts are warning that Office of Fair Trading investigators are expecting massive fines to be levied when contractors face charges in 2009.

The probe has been running for three years and has involved dawn raids on 57 construction companies.

OFT deputy director of the cartels group Deborah Jones updated an audience of contractors on the investigation last night.
And organisers of the event, CIOB and solicitors Berwin Leighton Paisner, warned companies to brace themselves for swingeing penalties.

BLP head of EU & Competition David Harrison said: “Fines could be in terms of hundreds of millions – we’ll be talking very large amounts. The OFT will want to see some headline grabbing fines coming out of this.”

CIOB chief executive Chris Blythe said: “This is a massive investigation and the OFT seem fairly bullish about fine levels.”
Firms face possible fines of up to 10% of their turnover if found guilty of breaking competition laws.

Ms Jones revealed that 38 firms have already confessed to bid rigging in an attempt to get their fines reduced.

A number of other contractors have also admitted guilt under new “Fast Track” rules which will lead to a 25 per cent reduction in future fines.

The investigation is now 95% complete and the OFT will issue its allegations in full – known as a “Statement of Objections” - next Spring before prosecutions are expected in 2009.